Why Harsco Shares Are Sliding Today

Harsco Corp HSC has updated its expected financial results for Q2 and FY22 outlook. The company expects Q2 U.S. GAAP operating loss from continuing operations of $(95) million - $(97) million (prior view for income of $17 million - $22 million).
Harsco expects to record a non-cash goodwill impairment charge for Clean Earth in Q2 due to lower earnings expectations and higher discount rates. The company expects goodwill impairment to be approximately $100 million.
The company sees Q2 Adjusted EBITDA of $47.5 million - $50 million (prior view $59 million - $64 million).
Due to unfavorable foreign exchange translation impacts, Harsco Environmental Q2 results are expected to be at the lower end of prior implied guidance.
For FY22, Harsco now expects a U.S. GAAP operating loss from continuing operations of $(51) million - $(61) million (prior view income of $81 million - $96 million) and Adjusted EBITDA of $210 million - $220 million (prior view $250 million - $265 million).
The company expects Harsco Environmental Adjusted EBITDA of $208 million - $214 million and Clean Earth's Adjusted EBITDA of $40 million - $44 million.
HSC expects to comply with its financial covenants at the end of Q2 and for the foreseeable future.
Price Action: HSC shares are trading lower by 9.31% at $5.26 on the last check Friday.